The Federal Hardest Hit Fund was set in place in the hopes of providing homeowners with another means of mortgage assistance if they are in a state or area which was particularly hard hit by the recession and, for these homeowners, programs like the home loan modification plan may not have been beneficial. There are some homeowners who have been unaided by modifications to their home loan but may benefit from state assistance programs which could offer plans similar to modifications.
Assistance with unemployment, underwater mortgages, mortgage reinstatement, and second liens on homes are just a few of the programs which are being implemented by various state housing agencies, but these will obviously differ from state to state. However, it’s hoped that homeowners who can take advantage of these state-specific modification efforts will be able to avoid the loss of their home in the coming months as financial difficulties continue to weigh down many homeowners.
The inability of homeowners to make their mortgage payments was overcome for some homeowners thanks to modification efforts on the part of financial institutions through federal assistance plans and directly from these financial institutions. Yet, mortgage servicers have not been perfect in their implementation of these foreclosure prevention efforts and many homeowners continue to wage complaints against these banks which have been charged with offering modified mortgages and more affordable home loans.
While these state-specific mortgage assistance programs are no guarantee to homeowners who are having trouble, there is hope that some of these specific plans which may be beneficial for homeowners in certain areas of the country, will be able to offer the affordability that homeowners need so that they can avoid the loss of their home until their personal financial condition improves.
Some of these programs are offering assistance similar to modification efforts but others will provide homeowners with options like a 0% interest loan which may be forgiven after a set period of time if a homeowner remains in their home. Also, some principal reduction opportunities may be available for certain individuals and there are also relocation assistance programs which may provide funding for homeowners who have no other options and will lose their home despite these assistance opportunities.
Again, these programs are no guarantee and will vary from state to state, but homeowners are being prompted to talk with their mortgage servicer or state housing agency to see if any programs from the Hardest Hit Fund are available in their area and for their particular mortgage predicament.